(Informal 1-2 line summaries, which certainly should not be relied upon for legal or other research purposes)
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- An interesting mixed Alice 101 decisions this morning involving digital picture frames that I'm afraid I don't have time to write up extensively. One specifically interesting tidbit, though, is that while the DCT characterized a claim as "aspirational" without adequate implementation detail, CAFC disagrees:
"The district court’s decision below characterizes the
claim at an impermissibly high level of generality . . . the district court disregarded the
claimed advance over the prior art of an improved digital
picture frame with a physically separable user interface . . . The district court’s quote of the claim language leaves out the critical claim limitation that the user interface “is physically separable from said at least one digital picture
frame” . . . the district court’s
erroneous characterization of the claim all but ensured the incorrect conclusion that the claim was not directed to a technological improvement but instead impermissibly claimed only a result.
In sum, we conclude that claim 19 of the ’573 patent is not directed to an abstract idea under Alice step one and is therefore patent eligible under § 101."
Other claims, however, were affirmed as ineligible. So there's a nice set of true positives and true negatives here.
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- CAFC affirms denial of a preliminary injunction in this foldable fan ecommerce design patent case. Basically, a third party acquired a similar design patent citing the asserted patent as prior art, ergo suggesting that noninfringing, but similar, designs are possible (at least for purposes of considering a PI):
"Given that the ’104 patent issued over Shenzhen’s ’982 patent, its issuance would suggest there is some
patentable difference between each patent’s claimed design, and, by extension, the ’982 patent and defendants’ accused products . . . The district court concluded
this undermined Shenzhen’s likelihood of success on its infringement claim, making preliminary injunctive relief inappropriate."
Plaintiff first tries to argue collateral estoppel, since the DCT previously rejected this basis for PI denial in connection with an earlier defendant:
"Shenzhen argues that the district court violated the
doctrine of collateral estoppel by allowing the New Defendants to advance arguments regarding the ’104 patent’s issuance that the district court had previously rejected . . . The suggestion that the district court’s denial of reconsideration had collateral estoppel effects that barred the
court’s reconsideration of its rationale, or the arguments
the district court previously considered, lacks merit . . . “There is no basis for using res judicata or collateral estoppel to prevent a judge from reconsidering an earlier ruling
in the same, ongoing case.”"
Next, plaintiff argues that the DCT misunderstood design patent law:
"Shenzhen is correct that the test
for obviousness differs from the test for infringement . . . However, any suggestion that the
district court held otherwise is unsupported by the record . . . Rather, the
district court noted that the test for anticipation mirrors
the test for infringement of design patents . . . we understand the district court to have assessed the strength of Shenzhen’s infringement claim via an analysis rooted in this court’s
caselaw holding that anticipation and infringement are the
same inquiry for design patents . . . when a design patent
issues over an earlier one, the presumption of patent validity suggests that the later claimed design is not anticipated
by—i.e., not substantially the same as—the earlier patented design."
So a nice tactic to keep in mind if you're a defendant. Affirmed.
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- 3-4 obviousness/claim construction cases today, none of which are precedential, and since I'm busy, I'm not going to write up all of them since they're mostly pretty vanilla (KEYSIGHT TECHNOLOGIES, INC. v. CENTRIPETAL NETWORKS, LLC provides some nice guidance for IPR housekeeping before you file, though - roughly, a naked table of claims and 103 references doesn't suffice).
This Woodway case involving treadmills was a bit more interesting, though, because CAFC disagreed with the DCT that there was prosecution disclaimer for the limitation:
"substantially preventing movement of the running belt in a second direction opposite the
first direction." (emphasis added)
Specifically, first regarding the specification:
"[W]e conclude that the
district court overlooked intrinsic evidence when it rejected
Woodway’s suggested plain and ordinary meaning of “substantially prevent” . . . The district court concluded that the
Asserted Patents “do not elaborate on the degree to which the safety device impedes rotation of the belt in the second direction.” This, however, is untrue: the claim language broadly
specifies that rotation in the second, dispreferred direction
is “substantially” prevented. As Woodway points out, “[t]he
word ‘substantially’ is commonly used in patent claims and
readily understood as a term of approximation meaning,
for example, ‘largely but not wholly’” . . . when such
safety devices are mentioned, nothing indicates that the
prevention of dispreferred rotation must be total: instead,
language like “help prevent undesirable forward rotation”
appears alongside language like “permit rotation . . . in
only one direction” and “prevent[ ] . . . forward rotation” . . .
Such phrases either explicitly indicate that the prevention is not expected to be complete or
do not specify the extent to which rotation is prevented in
the dispreferred direction . . . Under these circumstances, we decline to find “words or expressions of manifest exclusion or
restriction” in the Asserted Patents’ specifications that
limit the plain and ordinary meaning of the “substantially
prevent[ ]” limitation."
Then as regards prosecution disclaimer:
"[W]e do not believe that either
subsequent amendment or arguments based on this rejection effected a clear and unmistakable disclaimer of claim
scope . . . Woodway amended the above claim language to
instead specify that the safety device “substantially prevents rotation of the portion of the safety device, the running belt and . . . at least one of the front shaft and the rear
shaft”. . . In context, this amendment does not, as the district court concluded, “clarify that
the running belt does not move in two directions” . . . Rather,
through this amendment, Woodway called attention to a
broader difference between its claimed invention and Bostic: . . . as Woodway argues, saying that Bostic’s belt is “free to move” in both directions says nothing about the amount of limitation the
claimed treadmill places on the dispreferred direction of
movement—it simply distinguishes a device that impedes
movement in one direction from a device that does not . . . We therefore find no prosecution history disclaimer resulting from Woodway’s arguments on Bostic."
Thus, after likewise rejecting other disclaimer findings, and vacating the noninfringement summary judgment under the old construction, CAFC vacates and remands.
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- In this precedential license agreement damages decision (arising from the Court of Federal Claims), CAFC affirms "the trial court’s decision to assess damages via a hypothetical negotiation" since "the law does
not compel deferring to the terms set out in a license agreement to assess copyright infringement damages." However, "because the trial court adopted
a legally impermissible view of the book of wisdom and
erred by assessing non-compensatory damages against the
government" CAFC vacates and remands for further proceedings.
"In February 2014, 4DD became aware the government
had exceeded the terms of its license and notified SMS. In
August 2014, 4DD directly contacted the government to
discuss the excess copies and requested payment for what
it estimated to be 68 additional Federator cores . . . The trial court rejected 4DD’s argument that the evidence proved an established royalty rate and instead used
a hypothetical negotiation to fix a reasonable royalty. After
establishing the hypothetical negotiation date as August 27, 2013, the trial court considered the relevant Georgia-Pacific factors and found that the government would
have possessed the superior bargaining position in this hypothetical negotiation . . . It determined that 4DD’s bargaining position was weakened given that (1) TETRA provided the government with little value, (2) TETRA had no established
profitability, and (3) there existed a similar and cheaper
software, Rhapsody . . . 4DD contends, the trial
court committed legal error when it estimated royalty rates
for the TETRA software using a hypothetical negotiation
framework rather than simply adopting the established
and previously agreed upon License or SEWP rates . . . Neither statute nor case law requires automatic adoption of royalty rates set out in licensing agreements when
calculating infringement damages . . . Thus, the relevance of licensing agreements varies with the degree to which those agreements
parallel the infringing activity . . . while a license may inform the reasonable royalty inquiry, no rule of law compels courts to defer to such
an agreement in lieu of conducting a hypothetical negotiation, particularly where material differences exist between
the terms of the license and the defendant’s infringement." (emphasis added)
This, while CAFC agrees with the DCT that its analysis isn't confined to the agreement rates, it disagrees that the DCT's subsequent "book of wisdom" analysis was appropriate.
"4DD contends that the trial court adopted an overexpansive view of the book of wisdom. . That is, the trial court
constructed the hypothetical negotiation with the
knowledge that the government would later cancel its work
with TETRA before it could be successfully implemented.
4DD suggests this amounts to legal error . . . this so-called book of wisdom allows courts to consider later-occurring events when appraising the value of a
patent or copyright at an earlier point in time"
The "book of wisdom" phrase / analysis comes from Sinclair Refin. Co. v. Jenkins Petroleum Process
Co., 289 U.S. 689, 698 (1933):
"Here is a book of wisdom
that courts may not neglect. We find no rule of law that sets
a clasp upon its pages, and forbids us to look within."
Basically, in this case, CAFC is clarifying that the BoW, while permissive, does have limits:
"The purpose of the book of wisdom is to provide insight
and reduce uncertainty as to the elements of a license the
parties are hypothetically negotiating . . . It may not, therefore, be used to impute knowledge of later-occurring events affecting the
value of the license that were unforeseeable at the time of
negotiating, such as the government’s change in leadership
and resulting decision to end its work with TETRA before
implementation . . . Because we cannot
separate the court’s error in applying the book of wisdom
from its assessment of the parties’ respective bargaining
positions, which has implications for the outcome of the hypothetical negotiation, we must vacate and remand for further proceedings." (emphasis added)
Ergo, after addressing a few more of the plaintiff's challenges, and some guidance for a proper BoW analysis, CAFC affirms as regards the extra-contractual royalty analysis, but vacates and remands as to the BoW analysis.
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- In this precedential decision, CAFC reverses a preliminary injunction grant, basically because 1) questions in the claims mitigated arguments of a likelihood of success on the merits for infringement; and 2) the assertions of "irreparable harm in the absence of injunctive relief [were] speculative at best."
Regarding the likelihood of success:
"We conclude . . . that the KNL defendants have, at a
minimum, shown that there is a substantial question regarding whether the accused door can satisfy a claim limitation requiring a panel that is “flexible along [its] entire length” . . . We see nothing in the specification or prosecution history suggesting that the claim language does not mean what it says when it requires a “second outermost
surface” which is “form[ed]” from “foam insulating material . . . during prosecution Cold Chain . . . stated that “[t]he
sandwich structures of Rauenbusch are not the same as
[the] claimed structure” because “the Rauenbusch sandwich structures do not include a foam insulating material
forming the second outermost surface of the door.”
We likewise conclude that there is a substantial question regarding whether the accused door is an “insulated
overhead door” . . . as that term is used
in claim 1."
Regarding irreparable harm:
"[W]hile Ridge alleged that it had been
forced to sell its doors at reduced prices because of the alleged infringement by the KNL defendants, it failed to
show that there was any causal nexus between sales of the
accused doors and the prices Ridge set for its own doors . . . . We conclude, moreover, that the district court erred in
determining that injunctive relief was merited based upon
the Ridge plaintiffs’ assertions that: (1) TTPS incorrectly
stated that the accused door was patented when it instead
was the subject of a pending patent application; and
(2) Kirk interfered with Ridge’s business relationships by
sending a letter to Whiting Door threatening royalty damages."
Ergo, reversed and remanded. This case is also a continuation of a, here-resolved, substantial rights discussion that's worth keeping in mind.
James Skelley is a solo practitioner based in Mountain View, California since 2015, focusing primarily upon technology transactions and intellectual property procurement. James' practice also serves as an "incubator" for new legal service technologies / methodologies and a "living example" of their application. To this end, James regularly partners with larger law firms and with his clients so as to improve the practice of intellectual property law.
- Utility / Design / PCT Patent Prosecution
- Open Source Diligence
- Technology Transactions (typically as a team)
- Litigation / Inter Partes Review Support (typically as a team)
- James tends NOT to handle low-volume trademark work (though referrals are available)
- USPTO - #59458 - 10/16/2006
- California - #257829 - 12/01/2008
- District Columbia - #1014986 - 08/05/2013
- James is available by email, 8x8 hangout, and in-person meetups in the Valley.
- Email is typically the best way to reach James.
- Machine Learning / Robotics
- Cryptograpy / Cryptocurrency / Smart Contracts
- Medical Device
- Computational Biology (primarily modeling and proteomics)
- Signal Processing (primarily wireless and compression)
- Quantum Physics (primarily semiconductor) / Electromagnetics (antennae, waveguides, etc.)
- Manufacturing / 3D Printing
- James tends NOT to handle pure chemistry applications (though referrals are available), however James HAS handled matters involving computational proteomics, cellular modeling, and diagnostic lab protocols
LawMux Bites are (very) short, one-page summaries of various legal concepts, cases, and technologies. As informal summaries, you certainly shouldn't rely upon them as legal advice / for business use, but they can help orient you if you're new to the subject matter.